Which is the amount that should be paid for a stock that


Which is the amount that should be paid for a stock that will pay a dividend of $2.44 in one year and $5.66 in two years? After that, the stock price will grow at a constant 5% per year forever.  The appropriate discount rate is 12%. Show your answer to the nearest $.01.

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Financial Management: Which is the amount that should be paid for a stock that
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